Staying healthy and looking good will never go out of style. Whether you’re trying to improve your cardiovascular health or want to get stronger, it pays to work out at home or hit the gym.
While gym memberships and home exercise equipment cost money, you might be able to recoup that expense by investing in the most profitable gym stocks.
Best fitness stocks in 2025
Best fitness stocks in 2025
Here are five of the best gym companies to watch this year:
| Company name | Market cap |
|---|---|
| Planet Fitness | $8 billion |
| Peloton Interactive | $2 billion |
| Lululemon Athletica Inc. | $30 billion |
| Garmin | $36 billion |
| Life Time Group | $7 billion |
1. Planet Fitness
1. Planet Fitness
Planet Fitness (PLNT -1.65%) operates a chain of ultra-low-cost gyms with monthly fees as low as $15. With more than 2,700 locations, the company prides itself on being inclusive of all fitness levels.
Most Planet Fitness gyms are located in the U.S. Management has a long-term goal of reaching 5,000 locations in the U.S. alone, and the company has plenty of opportunity to expand internationally.
Most Planet Fitness locations are franchises, but the company also directly operates more than 275 facilities. The franchise business model results in a very high operating margin with low capital intensity.
Planet Fitness is well positioned to capture market share after many of its competitors closed their doors permanently due to the COVID-19 pandemic. Strong results over the last two years have led to reacceleration in club openings and expanded operating margin.
2. Peloton
2. Peloton
Peloton (PTON -1.92%) is known for its connected stationary bikes and other home workout equipment. Although users must purchase Peloton equipment, the company earns most of its revenue from the subscriptions required to fully utilize its bikes and treadmills.
Peloton has more than 2.8 million subscribers who pay $44 per month for a connected fitness subscription. Over 500,000 more pay $13 per month for the digital-only subscription. Digital subscriptions are immensely profitable for Peloton, which has a gross margin of nearly 50%.
The home gym company thrived during the pandemic since most people were confined to their homes. But, as the pandemic subsided and gyms reopened, the company has struggled to hold on to subscribers, especially for its digital-only product.
The stock sold off significantly since the height of the pandemic, as the tailwind turned into a massive headwind. Peloton grew its operating expenses as if the shift to home workouts was a permanent phenomenon. It paid for that in subsequent years. Management is now focused on right-sizing its operations to return to profitability.
3. Lululemon Athletica
3. Lululemon Athletica
Lululemon Athletica (LULU -2.33%) is a leading apparel retailer, specializing in yoga pants and other athletic wear. Its premium brand and the comfort of its clothes led to strong sales growth over the last few years as athleisure has become a mainstream style choice.
Management expects to double its sales from 2021 by 2026, with a goal of $13 billion in revenue. Sales growth has been slower in the United States, but its international growth is strong and several key markets such as China remain under-penetrated by the Canadian company.
The company also moved into the connected fitness space with its 2020 acquisition of Mirror, which it rebranded to Lululemon Studio. The move hasn't worked out. It discontinued the Mirror device and partnered with Peloton to service its subscription home workout programs.
4. Garmin
4. Garmin
Garmin (NASDAQ:GRMN) started by manufacturing global positioning system (GPS) navigation devices for automobiles. Today, the company generates the bulk of its revenue from personal fitness devices such as smartwatches, fitness trackers, cycling power meters, and heart rate monitors. Consumer demand for fitness trackers continues to grow as more people look for ways to enhance their health.
Garmin saw every segment reach record revenue in 2024, driving 20% overall revenue growth. Products in golf and diving helped support the strong sales for the year, while its fitness segment saw an expanded market share in wearables. Lower costs combined with its improved scale have helped it drive expanding operating margins over time. With its success in incorporating its advanced GPS and motion-tracking technology into its devices, it can continue to gain share over time.
5. Life Time Group Holdings
5. Life Time Group Holdings
Life Time Group Holdings (LTH -2.51%) operates more than 175 luxury fitness centers in the U.S. and Canada. Over the last five years, Life Time has seen significant improvements in member engagement and revenue per member, up 29% and 37%, respectively. That's driven by constant improvements and renovations. It recently capitalized on the growing interest in pickleball by dedicating space in its facilities to the sport.
As a luxury brand, Life Time has the opportunity to increase the value of its memberships more than low-cost gyms catering to budget-conscious consumers such as Planet Fitness. Its recent moves have resulted in very strong member retention while still attracting new members. Not only does that produce nice revenue growth, but it provides strong operating margin expansion. The company saw net income increase 55% in 2024, and management expects even faster earnings growth in 2025.
Are gym stocks right for your portfolio?
Are gym stocks right for your portfolio?
Gyms, connected fitness, and digital subscriptions all generate recurring revenue, which can lead to more predictable revenue growth. Subscriptions can also provide a strong revenue base for companies to sell equipment or apparel. Focusing on investing in companies with business models that generate plenty of cash is likely the most profitable approach.
The performance of gym stocks can vary seasonally since many people focus more on their health around the new year. But despite that potential price volatility, adding a top gym stock to your portfolio may be just the right fit for you. At the very least, buying stock in a fitness company may make you feel better about paying for an unused gym membership or a Peloton that you hang clothes on.
FAQ
Gym Stocks FAQ
Are there any gym stocks?
There are gym stocks traded on U.S. stock exchanges. Planet Fitness and Life Time Group are two examples of companies with publicly traded stocks who operate fitness centers.
Can you buy Gymshark stock?
Gymshark is a privately held company. As such, the only way to buy Gymshark stock is to deal directly with an insider who owns shares. You can't buy shares on the public market.
Can you invest in gyms?
You may be able to invest in a local gym or chain of gyms by working directly with the owners, but it's likely much easier to buy shares of publicly traded gym stocks such as Planet Fitness.
Is Planet Fitness a good stock to buy?
Planet Fitness is growing quickly and has shown strong operating results thanks to prudent management during the last few years. It's proven a good company. However, whether it's a good stock to buy will depend on its valuation, especially relative to other growth stock opportunities in the market.
